A Health Savings Account (HSA) empowers you to save for out-of-pocket medical costs while also saving money on taxes*. The money you contribute to your HSA is tax-deductible, effectively lowering your taxable income. And the dividends you earn are tax-deferred.
Who Can Open an HSA?
Anyone covered by a high-deductible health plan (HDHP) can open an HSA, whether you're self-employed or work for someone else – even if your employer maintains the HDHP.
How Can You Use Your HSA?
When you withdraw funds to use for qualified medical expenses, the money is never taxed. Funds can be accessed with a Visa® HSA card so qualified expenses can be paid for instantly.
Qualified expenses for an HSA include:
- Doctor visits and co-pays, including primary care, pediatrician, obstetrician, gynecologist, dermatologist, podiatrist, chiropractor and more
- Dental treatment including orthodontics and dentures
- Eye care including ophthalmologist, optician and optometrist visits, eyeglasses, contact lenses and LASIK surgery
- Prescription medications
- Hospital services
- Long-term care insurance
- Transportation expenses for healthcare
- Crisis management, including drug and alcohol abuse
- Certain healthcare insurance coverage beyond age 65
- Healthcare coverage when unemployed including COBRA premiums
- No monthly or annual fees
Visit the Internal Revenue Service website for details on HDHP criteria and annual HSA contribution limits. Or, read Publication 969 for more information on Health Savings Accounts.
Open a Health Savings Account today!
If your HDHP is compatible with an HSA, you can open an HSA with CAFCU. Application forms are available at your nearest branch, or contacting our Member Center.
| Minimum balance to obtain APY** | APY** | Dividend Rate |
|---|---|---|
| $10,000 | 0.50% | 0.50% |
| $5,000 | 0.40% | 0.40% |
| $1,000 | 0.30% | 0.30% |
| $1 | 0.20% | 0.20% |
